An overview of main changes coming to the CGT regime on 6th April 2008 with some of the planning pitfalls to take into consideration prior to the new regime and beyond.
Note: This article was updated on 11 March 2008
From 6 April 2008 substantial changes to Capital Gains Tax (CGT) will apply to individuals, trustees and personal representatives, but not for companies.
Finance Act 2008 will introduce the following changes:
- A main rate of CGT of 18% will apply to all gains other than those covered by the new entrepreneurs tax relief or the CGT annual exemption.
- A lower rate of 10%* for gains on certain business assets which are covered by the new Eentrepreneurs relief (see below).
- Capital gains will not longer be taxed by reference to income tax ra...